Answer to Question #305912 in Finance for Kelsey Jand

Question

Discussion Questions: According to an article by CNBC, a new survey finds the median American household has $2,729 in a savings account in 2019 and 34% of Americans have nothing saved. What does this say about Americans' financial management? How does the lack of saving impact other Americans?

Prompt: I find this issue to have two sides to it: This represents not only people that let their money slip away from them and spend it all, but also people that do not have the financial ability to save. Some people that are living paycheck to paycheck do not have any spare money to put into a savings account. With bills, rent, groceries, and any dependent/family costs to deal with, some families are not financially able to put any money into a savings account.

Instructions: According to the discussion questions, include in your response whether or not you agree or not and the reason(s) why in regards to the prompt.

Answer 1

Based on the data presented, it can be said that these 34% either spend too much or are below the poverty line.

Lack of savings can also affect investments in the country, which then affect other citizens: no investment, no economic development